NEW DELHI: With global energy demand expected to continue rising, Chennai Petroleum Corporation Ltd (CPCL) sees an opportunity for existing refiners to invest in setting up new capacities and product distribution facilities.
Speaking to shareholders at its annual general meeting, chairman Sanjiv Singh pointed out that despite the emergence of disruptive technology like electric mobility and renewable energy, overall growth in primary energy demand is expected to be strong at a 1.3 per cent compounded annual growth rate till 2040.
“In absolute terms, the demand for primary energy is expected to increase from 13,000 million tonnes oil equivalent (MTOE) at present to about 18,000 MTOE by the year 2040, an additional demand of about 5,000 MTOE. Creation of necessary infrastructure to generate and distribute such a huge quantum of energy is a challenging task and needs huge investments. This creates an opportunity for the existing refiners to invest in setting up new capacities and product distribution facilities,” he said.